Assignment 1

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Islamic Banking - Profit Calculation on Deposits

Assignment
Following is the Deposit situation at Islah Islamic Bank.
Monthly Av.
Deposit (TENOR) Deposit Days with Bank Daily Balance
Balance
(Months) (Rs.) (Rs.) (Rs.)
3 60,000 10 600,000.00 19,354.84
3 1,500,000 20 30,000,000.00 967,741.94
Month wise Total 30,600,000.00 987,096.78
Month wise Daily Av. Balance
(Months) (Rs.) (Rs.) (Rs.)
6 400,000 15 6,000,000.00 193,548.39
6 350,000 14 4,900,000.00 158,064.52
Month wise Total 10,900,000.00 351,612.91
Month wise Daily Av. Balance
(Months) (Rs.) (Rs.) (Rs.)
12 2,500,000 10 25,000,000.00 806,451.61
12 500,000 12 6,000,000.00 193,548.39
Month wise Total 31,000,000.00 1,000,000.00
Month wise Daily Av. Balance 72,500,000.00 2,338,709.69

Following is the additional information

Total size of the Asset Pool = 64,193,548
Total Income = 753,973
Bank's (mudarib) Share = 150,795
Days in Month = 31
Mudarabah Sharing Ratio = 20%
Weightage of the Equity =1
You are required to calculate the Income allocation along with annualized rate of return
to each type of deposit.
Income Allocation
Tenor Av. Deposit Weightage Wted. Av % (per anum)
(Rs.)
A B C D= (B*C) E= 603../63623*D F=E/B*100*365/31
3 987,096.78 0.60 592,258.07 5,614.86 6.70
6 351,612.91 0.70 246,129.04 2,333.41 7.81
12 2,338,709.69 1.00 2,338,709.69 22,171.97 11.16
Eq 60,516,128.62 60,446,451.21 573,058.17 11.15
Total 64,193,548.00 63,623,548.00 603,178.40